Online lending platforms – Preme Kvihan http://premekvihan.net/ Thu, 25 Nov 2021 02:24:58 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://premekvihan.net/wp-content/uploads/2021/10/profile.png Online lending platforms – Preme Kvihan http://premekvihan.net/ 32 32 SEC writes guidelines for online lending platforms – Manila bulletin https://premekvihan.net/sec-writes-guidelines-for-online-lending-platforms-manila-bulletin/ Sun, 21 Nov 2021 11:55:00 +0000 https://premekvihan.net/sec-writes-guidelines-for-online-lending-platforms-manila-bulletin/ The Securities and Exchange Commission (SEC) has released draft guidelines for the registration and operation of online lending platforms (OLP) as part of its efforts to end abusive and predatory practices. The Commission released the draft guidelines for public comment on November 19, following the imposition of a moratorium on the registration of new PLOs […]]]>

The Securities and Exchange Commission (SEC) has released draft guidelines for the registration and operation of online lending platforms (OLP) as part of its efforts to end abusive and predatory practices.

The Commission released the draft guidelines for public comment on November 19, following the imposition of a moratorium on the registration of new PLOs on November 5.

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The proposed guidelines will apply to existing and newly registered finance and lending companies that have not yet owned, operated or used PLOs and other modes of financial technology (fintech), as well as those that are already engaged in fintech, looking to provide their credit products and related services.

Under the proposed guidelines, no finance or loan company will be permitted to own, operate or use PLOs or engage in financial technology without registration and prior approval by the SEC.

The company’s ability to engage in fintech should also be included in its objective as stated in its statutes.

In addition, PLO names should be registered as trade or trade names of the finance or lending company, in accordance with SEC Circular No. 13, Series of 2019, which provides the amended guidelines and procedures on the use of corporate names and partnerships. .

In addition to being duly registered and licensed as finance or loan companies, applicants for a PLO license must also have at least five directors and at least two independent directors, or a number that will constitute 20 percent of the members of the board, whichever is the highest.

The applicant must submit certain documents to the Commission, including a detailed business and operational plan containing the company’s compliance with the Truth in Lending Act (TILA) and SEC disclosure requirements on corporate advertisements. finance and loan companies and reporting online loan platforms.

In addition, the applicant finance or loan company must demonstrate that it complies with the prohibition of unfair debt collection practices by finance companies and loan companies; the law on the credit information system; and the requirement for companies, partnerships, associations and individuals to create or designate an email account address and mobile phone number for transactions with the Commission.

The SEC Corporate Governance and Finance Department (CGFD) will then assess the documents submitted by the applicant company.

The finance or loan company will then present its business and operating plan as well as its marketing strategy, target market, interest rates, loan products and services to a panel of SEC representatives.

The finance or loan company will also provide an overview of the PLO simulating the user’s actual experience, their complaints handling process, and a discussion of the extent of the data to be collected by the PLO and how they will be processed.

The SEC panel will then submit its recommendation to the En Banc Commission, which will decide whether to accept or deny the request.

The decision of the Commission en banc will be considered final. Rejected finance and loan companies can reapply after one year and must demonstrate that the reason for the rejection no longer exists.

According to the draft guidelines, the OLP license will have an initial validity of one year from the date of issue, subject to periodic review and renewal by the SEC.


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SEC suspends registration of online lending platforms https://premekvihan.net/sec-suspends-registration-of-online-lending-platforms/ https://premekvihan.net/sec-suspends-registration-of-online-lending-platforms/#respond Tue, 09 Nov 2021 15:07:23 +0000 https://premekvihan.net/sec-suspends-registration-of-online-lending-platforms/ Read this in the digital edition of The Manila Times. On November 2, the Securities and Exchange Commission (SEC) released Memorandum Circular 10, Series of 2021, imposing a moratorium on registrations of new online lending platforms (OLP). As of now, only loan and finance companies registered with PLOs as of November 2, 2021 can operate. […]]]>

On November 2, the Securities and Exchange Commission (SEC) released Memorandum Circular 10, Series of 2021, imposing a moratorium on registrations of new online lending platforms (OLP). As of now, only loan and finance companies registered with PLOs as of November 2, 2021 can operate. The moratorium also covers the registration of new PLOs by existing loan and finance companies.

The list of companies registered with PLOs in accordance with Information Circular 19, Series of 2019 (MC 19), which provides disclosure requirements on finance company and loan company advertising and lending platform reporting online, is attached to the circular which has just been published. The moratorium will remain in effect until it is formally lifted by the SEC.

Section 3 of MC 19 requires loan and finance companies to submit to the Corporate Governance and Finance Department of the SEC an Affidavit of Compliance (SEC Form 1 – Existing Online Lending Platforms) containing a report of all existing PLOs within 10 days of the entry into force of the circular. PLOs that are to be developed, operated, used or modified must also be reported through an Affidavit of Compliance (Form SEC 2 – Existing Online Lending Platforms) no later than 10 days before the start of operations of said PLOs. The forms are also attached to MC 19.

The moratorium is the SEC’s response to numerous complaints about alleged violations by PLOs of existing regulations. In the meantime, he will closely monitor and evaluate the operations of existing PLOs so as to promote lending and financing activities and allow the industry to thrive and develop while minimizing any risk associated with or inherent in lending. online loan operation to ensure consumer protection. The commission has seen the emergence of financial technology companies that engage in predatory practices to the detriment of borrowers.

The SEC is also in the process of drafting the PLO Registration and Licensing Guidelines for the purpose of prescribing documentary requirements and qualifications for loan and finance companies relating to the operation of their PLOs. The guidelines aim to enable these businesses to better meet the needs of borrowers and, at the same time, fill in the gaps that give rise to abusive and predatory practices.

PLOs that were registered with the SEC before the moratorium can continue to operate and be used for loans or funding online. The commission will subject existing PLOs to strict monitoring, audit and review to ensure compliance with all applicable laws, rules and regulations.

As of this writing, the commission has canceled the licenses of 35 loan and finance companies for violation of the rules. The registration certificates of 2,081 companies were also revoked for failure to obtain a certificate of authority under the Loan Company Regulation Act 2007. or finance company.

For an updated list of registered PLOs, visit the SEC website via the following link: https://www.sec.gov.ph/lending-companies-and-financing-companies-2/list-of- recorded-online-lending-platforms /.

Kelvin Lester K. Lee is Commissioner of the Securities and Exchange Commission. The views and opinions expressed here are hers. You can send your comments and questions to [email protected]


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SEC suspends registration of new online lending platforms https://premekvihan.net/sec-suspends-registration-of-new-online-lending-platforms-2/ Fri, 05 Nov 2021 07:00:00 +0000 https://premekvihan.net/sec-suspends-registration-of-new-online-lending-platforms-2/ Ramon Royandoyan – Philstar.com November 5, 2021 | 4:23 p.m. MANILA, Philippines – The Securities and Exchange Commission has shut down online lending platforms by suspending new listings in an attempt to end predatory behavior by these finance companies. In a statement released Friday, the regulator issued the moratorium as it watched fintech companies take […]]]>
Ramon Royandoyan – Philstar.com

November 5, 2021 | 4:23 p.m.

MANILA, Philippines – The Securities and Exchange Commission has shut down online lending platforms by suspending new listings in an attempt to end predatory behavior by these finance companies.

In a statement released Friday, the regulator issued the moratorium as it watched fintech companies take advantage of financially needy Filipinos amid the pandemic that has plunged the Philippine economy.

“We have seen the emergence of fintech companies that engage in predatory lending, taking advantage of those in financial difficulty during the pandemic. The Commission will work to root out those abusive finance and loan companies that only bury borrowers in even more debt, ”said SEC Chairman Emilio B. Aquino.

As it stands, the SEC has said that online lending platforms registered before this rating will be allowed to continue operating, as those businesses will be subject to strict regulatory oversight and compliance.

There are 101 loan and finance companies registered with the SEC before the suspension.

That said, the regulator issued a circular memorandum ahead of the publication of new rules governing the licensing and registration of online lending platforms of finance and lending companies.

The SEC has revoked the licenses of 35 finance and loan companies over a long list of violations.

Likewise, the SEC has ordered the closure of 58 online lending platforms due to a lack of authority to operate as a lending or financing business.

The regulator also revoked the registration certificate of 2,081 loan companies because these companies failed to obtain a certificate of authority mandated by the 2007 Loan Company Regulation Act.


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SEC suspends registration of new online lending platforms https://premekvihan.net/sec-suspends-registration-of-new-online-lending-platforms/ https://premekvihan.net/sec-suspends-registration-of-new-online-lending-platforms/#respond Fri, 05 Nov 2021 06:47:33 +0000 https://premekvihan.net/sec-suspends-registration-of-new-online-lending-platforms/ The Securities and Exchange Commission (SEC) has imposed a moratorium on the registration of new online lending platforms (PLOs) from finance and lending companies. The moratorium came into effect on Friday, November 5. On November 2, the business regulator released SEC Circular No.10, which provides for the moratorium, ahead of the publication of new rules […]]]>

The Securities and Exchange Commission (SEC) has imposed a moratorium on the registration of new online lending platforms (PLOs) from finance and lending companies.

The moratorium came into effect on Friday, November 5.

On November 2, the business regulator released SEC Circular No.10, which provides for the moratorium, ahead of the publication of new rules that will govern the licensing and registration of finance company PLOs. and loan.

“We are currently developing new guidelines that will allow loan and finance companies to better meet the needs of borrowers and, at the same time, close the loopholes that give rise to abusive and predatory practices,” said the president of the SEC, Emilio Aquino.

“We have seen the emergence of fintech companies that engage in predatory lending, taking advantage of those in financial difficulty during the pandemic. The Commission will work to root out those abusive finance and loan companies that only bury borrowers in even more debt, ”Aquino said.

The SEC said PLOs, which were registered before the moratorium, can continue to operate and be used for loans or funding online.

The corporate regulator added that it would subject existing PLOs to strict monitoring, audit and review to ensure compliance with all applicable laws, rules and regulations.

The SEC said it has so far canceled the licenses of 35 finance / loan companies due to various violations of applicable rules and regulations.

The certificate of registration of a total of 2,081 loan companies was also revoked by the SEC for failing to obtain the required certificate of authority under Republic Law 9474 or the 2007 Law on regulation of loan companies.

In addition, 58 online loan applications were ordered to cease their activities because they were not authorized to operate as a loan or finance company. – VBL, GMA News


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SEC stops registration of online lending platforms https://premekvihan.net/sec-stops-registration-of-online-lending-platforms/ https://premekvihan.net/sec-stops-registration-of-online-lending-platforms/#respond Fri, 05 Nov 2021 06:47:00 +0000 https://premekvihan.net/sec-stops-registration-of-online-lending-platforms/ The Securities and Exchange Commission (SEC) announced Friday, November 5, 2021 that it has imposed a moratorium on the registration of new online lending platforms (PLOs) of finance and lending companies, with immediate effect. The SEC Memorandum Circular 10, Series of 2021, released on November 2, orders the moratorium. The circular describes PLOs as a […]]]>

The Securities and Exchange Commission (SEC) announced Friday, November 5, 2021 that it has imposed a moratorium on the registration of new online lending platforms (PLOs) of finance and lending companies, with immediate effect.

The SEC Memorandum Circular 10, Series of 2021, released on November 2, orders the moratorium.

The circular describes PLOs as a type of internet finance that facilitates online lending operations to meet the financial needs of individuals and / or small and medium businesses.

It cites the “numerous complaints about alleged violations by online lending platforms of existing regulations on the operation and provision of lending and financing services” that the SEC had received as grounds for the moratorium.

The moratorium also comes as the commission prepares to issue new rules that will govern the licensing and registration of PLOs from finance and loan companies.

“We are currently developing new guidelines that will allow loan and finance companies to better meet the needs of borrowers and, at the same time, close the loopholes that give rise to abusive and predatory practices,” said the president of the SEC, Emilio Aquino.

“We have seen the emergence of fintech companies that engage in predatory lending, taking advantage of those in financial difficulty during the pandemic. The Commission will work to root out those abusive finance and loan companies that only bury borrowers in even more debt, ”Aquino said.

PLOs registered with the SEC before the moratorium can continue to operate and be used for loans or online funding. A list of these 101 PLOs appears on the SEC website.

To date, the SEC has canceled the licenses of 35 finance / loan companies due to various violations of applicable rules and regulations.

The certificate of registration of 2,081 loan companies has also been revoked by the SEC for their inability to obtain the required certificate of authority, pursuant to Republic Law 9474 or the Company Regulation Law of 2007. ready.

In addition, 58 online loan applications were ordered to cease their activities because they were not authorized to operate as a loan or finance company.

The SEC asks the public to verify whether the loan or finance company they are dealing with is licensed by browsing the list of such companies on the SEC website. (With RP)


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Online lending platforms cannot be allowed to charge exorbitant interest: HC https://premekvihan.net/online-lending-platforms-cannot-be-allowed-to-charge-exorbitant-interest-hc/ https://premekvihan.net/online-lending-platforms-cannot-be-allowed-to-charge-exorbitant-interest-hc/#respond Tue, 27 Jul 2021 07:00:00 +0000 https://premekvihan.net/online-lending-platforms-cannot-be-allowed-to-charge-exorbitant-interest-hc/ The Delhi High Court added that it expects the Union government and the RBI to come up with a solution by the next court date on August 27. The Delhi High Court said on Tuesday that online lending platforms offering short-term personal loans through mobile apps could not be allowed to charge exorbitant interest and […]]]>

The Delhi High Court added that it expects the Union government and the RBI to come up with a solution by the next court date on August 27.

The Delhi High Court said on Tuesday that online lending platforms offering short-term personal loans through mobile apps could not be allowed to charge exorbitant interest and processing fees and asked the Center and the RBI to consider the matter. An expert body is needed to look into the matter, the High Court said, adding that it expects the Union government and the RBI to come up with a solution by the next court date, August 27.

The interest rate should not be exorbitant. Just look at the difficulties. An expert body is required. If you’re that slow to act, we’ll do it with our order with the help of a panel of experts, said a bench of Chief Justice DN Patel and Justice Jyoti Singh. The bench added that this exorbitant interest rate and processing fee cannot be allowed.

The court heard a PIL demanding regulation of online lending platforms offering short-term personal loans at exorbitant interest rates through mobile apps, and allegedly humiliating and harassing people for late repayments.

During the hearing, Additional Solicitor General Chetan Sharma and Permanent Central Government Advocate Anurag Ahluwalia said the government would look into the matter and requested some time for it.

Lawyer Ramesh Babu MR, representing RBI, said that the Reserve Bank of India regulates banks and non-bank financial companies and does not regulate online lending platforms and the central government has the power to do so. to do. He further stated that a committee had already been formed to deliver its report and requested time to record the report and an additional affidavit.

The petition was filed by Telangana-based Dharanidhar Karimojji, who works as a freelance digital marketing writer, claiming that there are over 300 mobile apps offering instant loans ranging from Rs 1,500 to Rs 30,000 for 7-15 days. However, these money lending platforms deduct almost 35% to 45% of the loan as a platform fee, service fee, or processing fee and only transfer the money left over to the accounts. the borrower’s bank, according to the petition.

Attorney Prashant Bhushan, representing Karimojji, told the court that these entities pose a threat because they charge exorbitant interest rates of 1% or more per day and that in the event of non-payment or late repayment of the amount loaned, they call everyone on the borrower’s contact list to humiliate and harass them into making payments. He said the prayer is to stop charging exorbitant interest rates to borrowers and added that the RBI is fully aware of the problem but no action has been taken.

During the hearing, the court appreciated the petitioner and said that it was one of the finest petitions and that it was truly filed for the welfare of the people. The High Court in January previously issued opinions and asked for responses from the Union government and the Ministry of Finance on the petition that said these lending platforms were charging exorbitant interest on the loans they made.

The plea indicates that even the RBI issued a press briefing warning the general public against these platforms. He called for instructions from the ministry and the RBI “to regulate and control the work of online digital lenders doing business through a mobile app or any other platform” and prevent them from charging exorbitant interest on borrowers’ loans .

The advocacy also sought to call on the ministry and the RBI to end harassment of borrowers by debt collectors, set a maximum interest rate applicable to online digital lenders, and put in place a grievance mechanism. in each state to resolve the problems encountered. by borrowers within a specified period.


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Online lending platforms cannot be allowed to charge exorbitant interest: Delhi High Court https://premekvihan.net/online-lending-platforms-cannot-be-allowed-to-charge-exorbitant-interest-delhi-high-court/ Tue, 27 Jul 2021 07:00:00 +0000 https://premekvihan.net/online-lending-platforms-cannot-be-allowed-to-charge-exorbitant-interest-delhi-high-court/ The Delhi High Court said on Tuesday that online lending platforms offering short-term personal loans through mobile apps could not be allowed to charge exorbitant interest and processing fees and asked the Center and the RBI to consider the matter. An expert body is needed to look into the matter, the High Court said, adding […]]]>
The Delhi High Court said on Tuesday that online lending platforms offering short-term personal loans through mobile apps could not be allowed to charge exorbitant interest and processing fees and asked the Center and the RBI to consider the matter.

An expert body is needed to look into the matter, the High Court said, adding that it expects the Center and the RBI to come up with a solution by the next hearing date on Aug. 27.

“The interest rate should not be exorbitant. Just look at the difficulties. An expert body is required. If you are so slow to act, we will do it with our order with the help of a panel of experts, ”said a bench of Chief Justice DN Patel and Justice Jyoti Singh.

The bench further stated: “This exorbitant interest rate and processing fees cannot be allowed.”

The court heard a PIL demanding regulation of online lending platforms offering short-term personal loans at exorbitant interest rates through mobile apps, and allegedly humiliating and harassing people for late repayments.

During the hearing, Additional Solicitor General Chetan Sharma and Permanent Central Government Advocate Anurag Ahluwalia said the government would look into the matter and requested some time for it.

Lawyer Ramesh Babu MR, representing RBI, said that the Reserve Bank of India regulates banks and non-bank financial companies and does not regulate the online lending platform and the central government has the power to do.

He further stated that a committee had already been formed to deliver its report and requested time to record the report and an additional affidavit.

The petition was filed by Telangana-based Dharanidhar Karimojji, who works as a freelance digital marketing writer, claiming that there are over 300 mobile apps offering instant loans ranging from Rs 1,500 to Rs 30,000 for 7-15 days.

However, these money lending platforms deduct almost 35% to 45% of the loan as a platform fee, service fee, or processing fee and only transfer the money left over to the accounts. the borrower’s bank, according to the petition.

Lawyer Prashant Bhushan, representing Karimojji, told the court that these entities pose a threat because they charge exorbitant interest rates of 1% or more per day and in the event of non-payment or delay in repayment of the amount. loaned, they call everyone on the borrower’s contact list to humiliate and harass them into making payments.

He said the prayer is to stop charging exorbitant interest rates to borrowers and added that the RBI is fully aware of the problem but no action has been taken.

During the hearing, the court appreciated the petitioner for filing a “beautiful petition” and said that it was one of the most beautiful petitions and that it was genuinely filed for the welfare. people.

The High Court in January previously issued notices and sought responses from the Center and the Ministry of Finance on the petition that said these lending platforms were charging exorbitant interest on the loans they made.

The plea indicates that even the RBI issued a press briefing warning the general public against these platforms.

He called for instructions from the ministry and the RBI “to regulate and control the operation of online digital lenders doing business through the mobile app or any other platform” and prevent them from charging exorbitant interest on loans from borrowers.

The advocacy also sought to call on the ministry and the RBI to end harassment of borrowers by debt collectors, set a maximum interest rate applicable to online digital lenders, and put in place a grievance mechanism. in each state to resolve the problems encountered. by borrowers within a specified period.


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Exorbitant interest rates cannot be charged by online lending platforms: HC | Latest Delhi News https://premekvihan.net/exorbitant-interest-rates-cannot-be-charged-by-online-lending-platforms-hc-latest-delhi-news/ https://premekvihan.net/exorbitant-interest-rates-cannot-be-charged-by-online-lending-platforms-hc-latest-delhi-news/#respond Tue, 27 Jul 2021 07:00:00 +0000 https://premekvihan.net/exorbitant-interest-rates-cannot-be-charged-by-online-lending-platforms-hc-latest-delhi-news/ The Delhi High Court said on Tuesday that online lending platforms offering short-term personal loans through mobile apps could not be allowed to charge exorbitant interest and processing fees and asked the Center and the RBI to consider the matter. An expert body is needed to look into the matter, the High Court said, adding […]]]>

The Delhi High Court said on Tuesday that online lending platforms offering short-term personal loans through mobile apps could not be allowed to charge exorbitant interest and processing fees and asked the Center and the RBI to consider the matter.

An expert body is needed to look into the matter, the High Court said, adding that it expects the Center and the RBI to come up with a solution by the next hearing date on August 27.

“The interest rate should not be exorbitant. Just look at the difficulties. An expert body is required. If you are so slow to act, we will do it with our order with the help of a panel of experts, ”said a bench of Chief Justice DN Patel and Justice Jyoti Singh.

The bench further said: “This large part of the exorbitant interest rates and processing fees cannot be allowed.”

The court heard a PIL demanding regulation of online lending platforms offering short-term personal loans at exorbitant interest rates through mobile apps, and allegedly humiliating and harassing people for late repayments.

During the hearing, Additional Solicitor General Chetan Sharma and Permanent Central Government Advocate Anurag Ahluwalia said the government would look into the matter and requested some time for it.

Lawyer Ramesh Babu MR, representing RBI, said that the Reserve Bank of India regulates banks and non-bank financial companies and does not regulate the online lending platform and the central government has the power to do.

He further stated that a committee had already been formed to deliver its report and requested time to record the report and an additional affidavit.

The petition was filed by Telangana-based Dharanidhar Karimojji, who works as a freelance writer in digital marketing, claiming that there are over 300 mobile apps that offer instant loans ranging from ??1,500 to ??30,000 for 7 to 15 days.

However, these money lending platforms deduct almost 35% to 45% of the loan as a platform fee, service fee, or processing fee and only transfer the money left over to the accounts. bank accounts of the borrower, according to the petition.

Lawyer Prashant Bhushan, representing Karimojji, told the court that these entities pose a threat because they charge exorbitant interest rates of 1% or more per day and in the event of non-payment or delay in repayment of the amount. loaned, they call everyone on the borrower’s contact list to humiliate and harass them into making payments.

He said the prayer is to stop charging exorbitant interest rates to borrowers and added that the RBI is fully aware of the problem but no action has been taken.

During the hearing, the court appreciated the petitioner for filing a “beautiful petition” and said that it was one of the most beautiful petitions and that it was genuinely filed for the welfare. people.

The High Court in January previously issued opinions and asked for responses from the Center and the Ministry of Finance on the petition that said these lending platforms were charging exorbitant interest on the loans they made.

The plea indicates that even the RBI issued a press briefing warning the general public against these platforms.

He called for instructions from the ministry and the RBI “to regulate and control the work of online digital lenders doing business through a mobile app or any other platform” and prevent them from charging exorbitant interest on borrowers’ loans .

The appeal also called for instructions from the ministry and the RBI to end harassment of borrowers by debt collectors, set a maximum interest rate charged by online digital lenders, and put in place a mechanism for settling debt. grievances in each state to resolve the problems encountered. by borrowers within a specified period.


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SEC bans online lending platforms for abusive behavior https://premekvihan.net/sec-bans-online-lending-platforms-for-abusive-behavior/ https://premekvihan.net/sec-bans-online-lending-platforms-for-abusive-behavior/#respond Mon, 05 Jul 2021 07:00:00 +0000 https://premekvihan.net/sec-bans-online-lending-platforms-for-abusive-behavior/ Due to unfair debt collection practices, including shame on social media and issuing death threats, the Securities and Exchange Commission (SEC) shut down online lending platforms Pondo Loan, Start Loan, Green Loan and Loan Club. The SEC revoked the Certificate of Authority (CA) of KingABC Lending Corp., which operates these four online lending platforms, in […]]]>

Due to unfair debt collection practices, including shame on social media and issuing death threats, the Securities and Exchange Commission (SEC) shut down online lending platforms Pondo Loan, Start Loan, Green Loan and Loan Club.

The SEC revoked the Certificate of Authority (CA) of KingABC Lending Corp., which operates these four online lending platforms, in an order dated June 7. SEC Circular Note No.18, 2019 series (SEC MC No.18), which prohibits unfair debt collection practices.

Business regulators found that KingABC threatened borrowers by humiliating them on social media, posting their names as scammers, and contacting people on the borrower’s contact list, although those people were not. named co-creators or guarantors.

KingABC also used obscenities, slurs or profane language and threatened to sue borrowers on the basis of fabricated legal grounds, according to the CGFD.

KingABC had previously been penalized for twice breaking SEC MC # 18. A third violation triggers either a monetary fine, suspension or revocation of the company’s CA, depending on the facts, circumstances and seriousness of the case.

“It is also clear that at this point, the revocation of the Respondent’s CA is not simply appropriate, but rather necessitated by the seriousness and number of his infractions,” said the CGFD.

Besides the 15 violations, KingABC faces 53 other complaints.

“Even more revealing is the fact that following the issuance of the formal charge, the Respondent’s abusive collection practices only worsened and became more hostile based on the evidence submitted by the complainants.

The department noted messages filled with death threats, profanity and other heinous and objectionable language, ”the SEC said.

—Doris Dumlao-Abadilla INQ

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Online lending platforms come to the rescue of the Paycheck Protection Program https://premekvihan.net/online-lending-platforms-come-to-the-rescue-of-the-paycheck-protection-program/ https://premekvihan.net/online-lending-platforms-come-to-the-rescue-of-the-paycheck-protection-program/#respond Sat, 30 Jan 2021 08:00:00 +0000 https://premekvihan.net/online-lending-platforms-come-to-the-rescue-of-the-paycheck-protection-program/ When auto repair shop owner Michael Hannah applied for a second paycheck protection program loan from his long-standing bank, BOK, earlier this month, he was greeted with noises of silence. “I’m on a waiting list. They didn’t answer me. I couldn’t even apply, ”said Hannah, owner of Hannah’s Mastertek in Aurora. In some ways, this […]]]>

When auto repair shop owner Michael Hannah applied for a second paycheck protection program loan from his long-standing bank, BOK, earlier this month, he was greeted with noises of silence.

“I’m on a waiting list. They didn’t answer me. I couldn’t even apply, ”said Hannah, owner of Hannah’s Mastertek in Aurora.

In some ways, this was déjà vu for Hannah, who, like many other small borrowers, was overlooked or stuck in the mad rush last spring to secure the federally guaranteed loans, which were becoming forgivable if the he money was spent mainly on salary expenses. Although she applied early, Hannah had to wait and watch the money run out.

He was rescued when Congress provided another round of P3 funding, allowing him to receive the $ 36,200 he requested, the same amount he is seeking this time. But it took weeks longer than expected, and he wasn’t going to wait for a rehearsal.

“I have a great banking relationship with BOK, but we still haven’t been contacted. And I couldn’t get the PPP canceled on the first loan, ”he said.

Hannah turned to Lendio, an online marketplace where small business lenders compete for loans. On Tuesday he submitted his documents online and the next day his loan application was sent out. He hopes to have his money in a few weeks.

“Lendio has ended up being one of the greatest platforms to use for underserved and unbanked or unbankable people,” said Bill Airy, franchise owner of Lendio Denver.

Airy said he and his wife Leanne alone processed 1,500 PPP loan applications and helped provide $ 32 million in loans last year. Nationally, Lendio has made more than 100,000 loans and made $ 8 billion with a fraction of the staff a large bank would typically employ and the plan is to do a lot more this time around.

BlueVine, Credably, LendingCircle, Intuit Quickbooks, OnDeck, PayPay, and Square are some of the fintech companies lending directly to businesses, while other platforms like Divvy and Kabbage use Lendio’s model to connect borrowers and sources. of capital.

Community lenders and even micro-lenders created to finance the smallest of small businesses are turning to or partnering with lending platforms to more effectively obtain PPP funds for their clients.

InBank, a community bank with offices in Colorado and New Mexico, individually underwrites PPP loans it submits to the SBA. And while it can work for larger dollar amounts, it is difficult to withdraw loans of a few thousand.

“We don’t do this in an automated fashion, but rather on a personal basis,” said Ed Francis, CEO and Chairman of InBank. Partnering with lending platforms such as Lendio, set up to handle a high volume of smaller loans, allows the bank to avoid turning down borrowers in need and who could become future clients. -he declares.

“There are a lot of fintech people who have good processes for small owners. We would not be doing them a good service, ”said Francis.

Colorado Lending Source, which like many micro-lenders had limited capital to work with, focused on answering questions and guiding borrowers through the PPP process rather than trying to create and finance loans.

“We’re doing things differently this time around. We’ve partnered with Lendio to make the lending process easier, ”said Laurel Walk, director of loans at Colorado Lending Source. The goal is to get more underserved small business borrowers to tap into public funds than they could last year alone.

Seventeen fintech lending platforms have made 18,167 loans worth $ 604.6 million through January 24, according to national figures provided by the SBA. As a benchmark, 614 credit unions with less than $ 10 billion in assets processed 17,958 PPP loans, although they made a higher dollar volume of $ 1.03 billion.

Large banks, defined as those with $ 10 billion or more in assets, processed slightly more loans per institution than fintechs, but they typically have thousands of employees to help manage the load. In terms of efficiency per employee and the ability to manage small loans, fintechs are hard to beat.

“We know in Colorado that 6,812 loans totaling $ 664.4 million have been approved through Jan. 24, but we don’t have other breakdowns for each state by type of lender, etc.,” Frances said. Padilla, director of the SBA’s Colorado district office. , in an email.

Lending platforms are distinguished by their technology and their ability to welcome new customers, regardless of their size. Lendio has 150 software developers who have worked tirelessly to retool the portal to work with the new SBA lending platform, Airy said. As the rules of the SBA evolve, they are able to adapt quickly.

Last year, a problem for PPP borrowers rejected or bypassed by their banks came to trying to establish a new financial relationship, which required compliance with Know Your Customer laws. Lending platforms are better equipped to quickly verify identities, making it easier for them to work with new customers.


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